The application of science and innovation to business processes influences the strength and competitiveness of industry by providing a basis for innovative change and encouraging economic growth and development.

Australia has a range of statistics relating to science and innovation, many of which are compiled by the Australian Bureau of Statistics (ABS). The key indicators relate to Australia's research and development effort and the extent to which businesses innovate.Australia's statistics in this field are based on international standards, particularly theFrascati Manualdeveloped by the Organisation for Economic Co-operation and Development, which is the basic international source of methodology for collecting and using research and development statistics.

A number of additional indicators on science and innovation, not included in this chapter, are compiled by the Australian Government Departments of Industry, Tourism and Resources, and Education, Science and Training.

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